Today is a good day! Yes, masks are off when you’re outside but that’s not what we’re talking about. Today we received confirmation from the ATO that based on an objection we raised on behalf of one of our clients, they had overturned a decision not to pay that client the Cash Flow Boost. Our client, a sole trader with a small commercial cleaning business, experienced a significant increase in trade at the beginning of the COVID-19 pandemic. In March they took on an employee to help with the increased workload, paid that employee wages (and super), and reported the wages and associated PAYG Withholding on their March BAS (and June, and so on). Employers are entitled to the Cash Flow Boost, right? So why did the ATO refuse to pay it in this instance? Well, their reasoning was that our client was ineligible because they did not pay any wages before March 12, 2020. There is only one problem with that – it’s not the law! So we went back to the ATO (more than once) to object to their decision. We made a clear and logical argument based on the legislation that enables the Cash Flow Boost, provided the correct supporting documentation, and had multiple telephone discussions with the ATO officer assigned to the case. As a result, this week our client will receive a bank transfer from the ATO for $20,000 – the minimum CFB entitlement across the March, June and September quarters. We’re so pleased to be able to help our clients maximise their entitlements, and will fight for those entitlements in circumstances where the ATO, SRO or any other organisation has not properly applied the law.
Now, please excuse us while we work to recover $70,000 of GST for a client who has made some mistakes in their accounts system!